Create a Layoff Plan
Before the Pink Slip Comes
By Terri Cullen
Staff Reporter of The Wall Street Journal
From The Wall Street Journal Online
Andy Hatchett had a stroke of good luck last year that has helped him enjoy a
comfortable early retirement. He got laid off.
Enraged after a subordinate repeatedly challenged his authority, Mr. Hatchett
stormed into his supervisor's office last September, fully intent on quitting his job.
"At the time, my supervisor was away at a meeting, and later I cooled off and had
second thoughts. I was called into a meeting 20 minutes later and I figured they
wanted to talk to me about quitting," the 59-year-old former lab technician says.
"But when they started talking about severance and retirement accounts I
suddenly realized I was being laid off."
Rather than panic at the prospect of being jobless several years from his planned
retirement, Mr. Hatchett went home and looked over the severance and benefits
package his employer was offering. After crunching some numbers on where his
retirement savings and investments stood, and what he thought he might need to
live on in retirement, he went back to his employer with a counter-proposal -which the company eventually accepted. Now, he's enjoying the early retirement
he often dreamed of.
Mr. Hatchett, however, is rather exceptional. The ugly truth is few people walk
away from a layoff feeling good about the experience or financially secure. But by
keeping a cool head and evaluating your options before you sign any layoff
agreement, you may be able to take some of the fear and financial uncertainty
out of the equation.
Like estate planning, layoff planning is something most people put off until they
have no other choice but to face it. But with few concrete signs of economic
recovery, the pink slips keep on coming: In the first two quarters of 2002 alone,
U.S. companies engaged in 3,423 mass layoffs -- job cuts of more than 50
workers -- which sent more than 693,500 people to the unemployment lines,
according to the Bureau of Labor Statistics.
By making yourself familiar with your legal rights and your company's workerseparation policies prior to a layoff, you can put a financial plan in place to help
you prepare to face the prospect of being out of work. And preparation may also
enable you to argue for a better severance package.
No two companies are the same, and myriad state laws affect your rights and
benefits eligibility during a layoff. But let's look at some common elements of
company benefits policies that may help you get a handle on what financial
resources you'll have at hand after a layoff.
Severance
No sooner does the hint of an impending layoff ripple through the office than
workers start guesstimating how many weeks of pay the company will offer in its
severance package.
John Beck, vice president for global relations at Drake Beam and Morin, a New
York-based career-management consulting firm, says the average worker usually
gets two weeks' compensation for every year they have been with the company.
Senior managers usually receive one month's pay for each year of service. (See
a DBM survey that looks at how the job search went for executive clients who
were involuntarily separated from their companies.) Severance payments usually
come in the form of weekly payments or as a lump sum, and are taxed as
personal income.
And don't kid yourself: There's no guarantee a company will offer severance, or
even match the same rate of severance paid to employees laid off in previous
rounds of cuts. Unless you have a labor-union contract or individual employee
contract that specifies a set amount of severance you'll be paid in case of a layoff
or job elimination, you're at the mercy of the company's generosity at a time
when most companies really can't spare the cash.
Companies with more than 100 employees are required to give two months'
notice under the Worker Adjustment and Retraining Notification Act when making
mass layoffs in which entire divisions or units are closed, so at the very least
you'll know you can count on that cash while you begin looking for another job.
To get some idea of what your severance paycheck might look like, check with
your employee-benefits department to determine how many weeks of pay, if any,
you may be entitled to during a layoff. Then plug those numbers, along with any
remaining sick leave or vacation days you may have coming to you, into this
severance-estimator calculator, offered by the Virginia Department of Human
Resource Management.
Severance packages sometimes come with strings attached, as well. Most
commonly, companies will ask that you sign a contract agreeing to a severance
package, to ensure that they won't be sued later for any alleged malfeasance.
Also, you may be asked to sign a contract that prohibits you from working with a
competing company -- in return for a handsome lump sum, of course. Before
agreeing to sign this kind of contract, ask yourself whether you'll be able to find
work in a non-competing field that would offer you a comparable paycheck and
benefits. If the answer is no, you may want to consult an attorney to help you
determine whether it's a good idea to sign the severance agreement.
Finally, do yourself a favor and don't plan on taking that fat severance check and
blowing it on a long vacation. The longer you're out of the job market, the harder
it will be to find another job and the more strained your finances will become. The
last thing you want a prospective employer to sense is any desperation on your
part.
Mr. Beck advises instead that you begin your job search immediately, using the
severance as a financial bridge to get you from one job to the next. Then, he
says, "Try to negotiate a later start date with your new employer, that way you
can take a few weeks off to unwind with the security of knowing you'll have a job
waiting."
Unemployment Insurance
How many weeks your unemployment insurance will cover depends on your
state, though the average is around 26 weeks. Washington state, which currently
has the second-highest unemployment rate in the country (7%), also has one of
the most generous benefits plans -- 30 weeks of coverage at a maximum of $496
a week.
Once you've exhausted your unemployment benefits, you may also be eligible to
get extended benefits, which often are offered by states during periods of high
unemployment. There also are additional benefits available to workers who have
lost their jobs as a direct result of a major disaster declared by the president of
the U.S., including a special fund set up to assist those affected by the terror
attacks of Sept. 11. Contact your state unemployment insurance agency to ask
whether you qualify for extended benefits. The Department of Labor's Web site
has contact-information links to all state agencies.
And remember that unemployment insurance is taxed as regular income. Unlike
your former employer, however, the government doesn't withhold those taxes for
you. So be sure to set aside a portion of your unemployment check each week in
a savings account so you'll have the cash available to pay the tax bill come April
15.
Retirement Accounts
Some of the biggest financial flubs surrounding a layoff are made with retirement
savings accounts.
"After a layoff, there can be a big temptation for a worker to want to retain his
standard of living, and when there's access to a large pool of retirement money it
can be tough to be conservative," says Roberta Casper Watson, head of the
ERISA Practice Group at Trenam, Kemker, in Tampa, Fla. "Many lose sight of
the fact that the money is so much more valuable when it stays in the plan."
But some individuals who are dealing with difficult family situations -- a child with
a debilitating illness or an elder-care arrangement -- don't have the luxury of
having a huge sum of cash in reserve. Whether or not you'll be able to tap your
retirement account for cash depends on whether you have a defined contribution
plan or a defined benefit plan. A defined contribution plan is an individual account
in your name that grows tax-deferred as long as your company manages the plan
in accordance with federal regulations; a defined benefit plan is a group account
where individuals in the plan are entitled to receive a fixed benefit upon reaching
retirement age, most often at age 65, regardless of when they left the company.
If you're not sure which plan your retirement savings fall under, check with your
employee-benefits manager or human resource department.
With a defined contribution plan, including 401(k)s, 403(b)s, profit-sharing plans
and the like, you are entitled to take all of your own contributions, and the vested
portion of any employer contributions, with you when you leave the company. If
you absolutely must tap the savings, remember that the you'll be hit with a 10%
penalty that will be withheld from the account immediately.
If you can make do without tapping your retirement savings account, be sure to
roll it into an individual retirement account, or IRA, or your next employer's plan to
avoid any tax consequences. Ask your plan administrator for an individual benefit
statement to determine how much money you have accrued and your vested
benefits. Keep in mind, you're almost always better off rolling your 401(k) into an
IRA because you'll have many more investment options available to you.
Also remember that if you have any outstanding loans with your retirement plan,
you'll be required to pay back the entire balance on the loans once you've left the
company. If you can't afford to pay back those loans, the loan balance will be
considered distributions from the plan by the Internal Revenue Service, and you'll
be hit with a 10% penalty on the balance.
-- Ms. Cullen writes the Fiscally Fit column for The Wall Street Journal Online. To read
past column, subscribers can visit the Fiscally Fit archives.
How to Cover All Bases
In the Wake of a Layoff
By Terri Cullen
Staff Reporter of The Wall Street Journal
From The Wall Street Journal Online
It's layoff season, in case you needed another reason to up the dosage on your
antidepressant.
Financially struggling companies often choose to make staff cuts in the fourth
quarter -- many notices unfortunately coincide with end-of-year holidays -- so the
firms can charge layoff-related expenses to the current tax year and start the new
year with a clean slate.
But as I pointed out recently in the first of this series on preparing for a layoff,
getting up to speed on what your company may offer in the way of pay and
benefits can take some of the fear and financial uncertainty out of being on the
receiving end of a pink slip.
In this column, we'll look at how to handle stock options; what you need to know
about health, life and disability insurance; and how to get the most out of
outplacement services.
Stock Options
Many employees who are facing a possible layoff are drowning in underwater
stock options, and wondering what the heck to do about them.
"Forget 'em," counsels Bruce Brumberg, editor of Mystockoptions.com, published
by Mystockplan.com, Brookline, Mass. "You'll almost always get a better deal
buying stock on the open market than exercising underwater stock options and
holding them." However, he adds, if you have capital gains this year, you may
want to consider the tax benefit of exercising your underwater options and taking
the loss to offset your gains.
Financial planners generally advise that if you have options that are "in the
money" -- or options where stock price is above your option price -- exercise and
sell them immediately. Don't buy and hold.
There are no laws requiring employers to accelerate the vesting of your stock
options -- or extend the period of time you're allowed to exercise those options -in the event of a layoff, so depending on your situation some or all of your stockoption grants may disappear after the pink slips have been handed out. Many
companies make a point of not accelerating the vesting of options since changing
the design of a stock-option plan often forces companies to take hefty accounting
charges.
If you have an employment contract, check the agreement to determine the
period allowed under the contract for exercising options in the event of job
termination. Otherwise, check the employee stock-option plan. Every company
that issues options has a generic plan that is approved by shareholders.
Employees with in-the-money stock options will need to move quickly to exercise
and sell their options. Mr. Brumberg says most companies give laid-off workers
just 30 to 90 days after termination to exercise their options, and some require
workers to do so immediately.
Incentive stock options cannot by law be exercised later than three months after
your date of termination, or the option will be treated as an nonqualifying stock
option when you exercise. That's a big distinction -- because you may be hit with
an array of federal, state and Social Security taxes, depending on which type of
option you hold.
With NQSOs, you must pay income tax on the difference between the exercise
price and the stock's market price when you finally buy the shares. This is
commonly known as the "spread." If you exercise, and hold those shares for
more than a year, you'll be taxed at the lower capital-gains rate -- typically 20% -on any additional profit you've earned when it comes time to sell. Because it's
considered compensation, you'll also get hit with Social Security and Medicare
taxes on the profit.
With ISOs, if you exercise the stock and hold it for at least 12 months, the spread
is taxed as capital gains, not as personal income. If you don't hold the ISOs for at
least a year, it's called a disqualifying disposition and you'll owe income tax your
profit. Then there's the now-infamous alternative minimum tax, which has forced
many an unwitting option holder into filing for bankruptcy, because they didn't
understand the implications of exercising options and holding on to the shares.
No doubt, mishandling stock options can unnecessarily inflate your tax bill come
April 15. To avoid mistakes, read Wall Street Journal reporter Ruth Simon's spoton article about your options when exercising stock options.
Insurance Coverage
The loss of health-care insurance is among the most frightening and costly
issues facing someone who is dealing with a layoff. But thanks to the
Consolidated Omnibus Budget Reconciliation Act of 1985, better known as
Cobra, most employers are required to allow laid-off workers to purchase healthcare insurance through the company's plan, enabling them to take advantage of
the lower group rate.
If your company has more than 20 employees, and isn't on the verge of
insolvency, you'll typically have up to 60 days from the day you receive notice of
your job loss, or from the day your current coverage ends -- whichever is later -to elect to purchase insurance from your employer's plan. You're eligible to
participate for up to 18 months, in most cases more than enough time to bridge
the gap until your new employer's coverage kicks in. (For more details about
eligibility under Cobra, see the Department of Labor Web site.)
If strapped for cash in the event of a layoff, ask your employee-benefits
counselor what the drop-dead last day is before your 60-day Cobra eligibility
window closes -- and then wait until that day to sign up for benefits and pay your
first premium. With luck, you'll have found a new job before then. And, if anything
should happen to you during that 60-day window, you can apply for benefits
retroactively and your costs will be covered. The going rate for most plans is
between $400 and $500 a month, but there are cheaper alternatives.
Access to health insurance usually is the biggest worry after a layoff, but few
people pay attention to two other insurance benefits that are equally important:
life insurance and disability insurance. Employer-sponsored insurance often is
the only life-insurance coverage many workers have. Most insurers will allow
workers to convert group-term life insurance policies to individual policies.
If you're young and in good health, says Dennis J. Nirtaut, managing director of
compensation and benefits at Arthur Andersen in Chicago, forget about taking on
the employer's pricey premium payments and start shopping around for your own
coverage.
"You really should first assess your personal financial situation, what your current
obligations are, what long-term financial obligations you'll have, in order to figure
out how much insurance you really need," he says. To gauge how much
insurance you may need -- or to assess whether you need any life insurance at
all -- use this calculator, offered by financial-news Web site CNN.com's
CNNMoney channel.
Once you've determined how much insurance you need, if any, head for the
Internet to shop for the best deals on life insurance -- rates for term life insurance
are low and you may be able to find a better deal through a Web-based service
such as InsWeb.com, IntelliQuote.com and Quotesmith.com.
But if you're approaching retirement and have a pre-existing condition that may
prevent you from obtaining insurance on your own post-layoff, converting your
employer's policy to an individual policy may be the only available option. If this
speaks to you, you'll need to act fast, since most insurers demand the conversion
take place within a month after the layoff. Premiums for converted policies can
run as high as $1 a month or more for each $1,000 of coverage.
As with life insurance, disability insurance coverage usually ends the day your
job is terminated. But a handful of states include some type of disability coverage
as part of their unemployment benefits. The Department of Labor's Web site has
contact-information links to all state agencies.
Outplacement Services
Many employers have outplacement counselors on hand the day layoff notices
are issued, though experts say a surprisingly large number of workers don't seek
outplacement advice right away.
Embarrassment plays a large role, says John Beck, vice president for global
relations at Drake Beam Morin, a New York-based career-management
consulting firm. "Even though most people know the routine management of
businesses is what drives restructurings, and that layoffs are not at all related to
job performance, there still lingers some sense of shame when you lose your
job," he says. "People tend to think, 'If I had only done something different, it
wouldn't have happened to me.' And that simply isn't true."
His advice: Get over it ... and schedule a counseling session as quickly as
possible. Sitting down with an outplacement counselor immediately after you've
received a layoff notice will not only help initiate the transition between your old
job and your new one, but it also can help eliminate some of the stress and worry
that typically plagues workers who aren't certain what their next step should be.
As with severance pay, no company is required by law to offer outplacement
services unless agreed upon in a labor union or employee contract. But most
large companies do offer some form of outplacement services. A typical
outplacement package might include group or individual counseling, resumewriting and job-hunting advice and assistance, and tips on networking and
interviewing.
Networking is key to quickly finding a new job, says DBM's Mr. Beck, though few
know how to do it right. "Networking still accounts for two-thirds of the jobs that
get filled in this country," he says. Meetings with former colleagues, long-time
friends in your industry, former employers, and professional or industry
organizations are all opportunities to network. "What an outplacement counselor
can do is give structure to your networking strategy, where you just might not
know where to look first," he says.
In fact, networking is so key to quickly finding a new position that it's a good idea
to fire up your network connections now, even if you feel you're not immediately
in danger of being let go.
Keep It Civil
One last note: Approach a layoff as you would any career transition, and do your
best not to let anger and hard feelings get the best of you. As Michael Corleone
said: "It's not personal, Sonny. It's strictly business."
Laura Cejen, a director in the compensation-consulting practice at managementconsulting firm Watson Wyatt in Washington, D.C., says it's best to think of your
former employer not only as a source for a favorable reference, but as a future
networking partner who may help you find a new job.
"Layoffs are difficult for everybody," she says, "but the employee who doesn't
burn bridges on the way out is going to have a better chance finding a job later
on."
-- Ms. Cullen writes the Fiscally Fit column for The Wall Street Journal Online. To read
past column, subscribers can visit the Fiscally Fit archives.
Why Severance Pay
Is a Tricky Lifeline
By Terri Cullen
Staff Reporter of The Wall Street Journal
From The Wall Street Journal Online
No sooner does the hint of an impending layoff ripple through the workplace than
employees start guesstimating how many weeks of pay the company will offer in
its severance package.
But severance pay isn't always guaranteed, particularly if there is no labor-union
contract or individual employee contract with your employer that specifies the
amount of severance you will be paid in case of a layoff or job elimination.
Companies aren't legally required to offer severance, or even match the same
rate of severance paid to employees laid off in previous rounds of cuts. You are
at the mercy of the company's generosity at a time when most can't spare the
cash.
Fortunately, most large companies do offer severance pay to help bridge the gap
between leaving the company and finding a new job. "On average, workers
usually get two weeks' compensation for every year they have been with the
company," says John Beck, vice president for global relations at Drake Beam &
Morin, a career-management consulting firm based in Hong Kong. Senior
managers typically receive one month's pay for each year of service, he says.
Severance payments usually come in the form of weekly payments or as a lump
sum, and are taxed as personal income.
In the case of mass layoffs in which entire divisions or units are closed,
companies are required by law to give two months' notice. So at the very least,
workers can count on a regular paycheck for eight more weeks as they begin to
look for another job.
To get some idea of what your severance paycheck might look like, check with
your employee-benefits department to determine how many weeks of pay, if any,
you may be entitled to during a layoff. Remember to ask whether you will be paid
for any unused sick leave or vacation days. Then head to the Web, where many
state unemployment-agency sites offer severance calculators to give you a
ballpark estimate of what you can expect. (Key in "severance calculator" on your
search engine.)
If your company is in financial trouble and in danger of filing for bankruptcy-law
protection, there is no guarantee that you will ever see any severance, even if the
company is legally bound to pay you. "You can sue the company to try and force
them to pay you. But then in the eyes of the court, you become a creditor," says
Roberta Casper Watson, head of the ERISA Practice Group at Trenam, Kemker,
in Tampa, Fla. "Lenders and other creditors will come first."
Severance packages sometimes come with strings attached, as well. In return for
a handsome lump sum, you may be asked to sign a contract that prohibits you
from working with a competing company. Before agreeing to sign this kind of
contract, ask yourself whether you will be able to find work in a noncompeting
field that would offer you a comparable paycheck and benefits. If the answer is
no, you may want to consult an attorney.
Perhaps the worst thing an unemployed worker can do is look at any lump-sum
severance package as the perfect excuse to take a long vacation. The longer you
are out of the job market, the harder it will be for you to find another job and the
more strained your finances will be as you do it. The last thing you want to look
like to a prospective employer is desperate.
Mr. Beck at Drake Beam & Morin advises that you instead begin your job search
immediately, using the severance as a financial bridge to get you from one job to
the next. Then, he says, "try to negotiate a later start date with your new
employer; that way you can take a few weeks off to unwind with the security of
knowing you'll have a job waiting."
-- Ms. Cullen writes the Fiscally Fit column for The Wall Street Journal Online. To read
past column, subscribers can visit the Fiscally Fit archives.
Why Some Older Executives Land Jobs -- and Others Don't
What makes some seasoned job seekers successful while others endure prolonged periods of
unemployment? Often the difference is a career path that's been linear and upward. Plus, seven
strategies you can put to work to boost your search.
Despite Progress, Age Bias Persists
Even amid widespread recognition of the problem, age discrimination continues to be an obstacle
for seasoned professionals. Find out how some baby boomers are fighting back.
Why Appearance Matters in a Post-50 Job Search
In a competitive business climate, older professionals are trying a variety of ways to project a
more youthful image. Find out why it can pay to skip the shoe-polish-black dye jobs and
miniskirts.
Take Advantage of Your Age When Courting Employers
If you believe your age is hurting your job hunt, you may not recognize the advantages you offer
employers. Here's how to articulate what you bring to the party.
What to Do When You're Told 'You're Overqualified'
Hearing that you have too much experience for a job is among the more frustrating rejections a
50-plus job seeker can suffer. Here's how to cope.
Why That Post-50 Job Is Getting Harder to Find
A seasoned executive discusses the real reasons why job seekers in his age group have more
difficulty than their younger competitors in the employment market -- and what this means to their
job search
Why Some Older Executives
Land Jobs -- and Others Don't
By Perri Capell
Why do some over-50 job hunters struggle to find jobs, while others seem to
have little trouble attracting offers? Surprisingly, recruiters say it has less to do
with candidates' wrinkles or gray hairs, and more to do with their corporate
experience and the direction of their career path.
Hiring managers and recruiters claim they prefer older, more experienced
executives over youthful ones, so long as their backgrounds fit the openings and
they demonstrate enthusiasm and energy.
"I don't claim to be completely blind to age, but I love executives over 50," says
Mark Jaffe, president of Wyatt & Jaffe, a Minneapolis recruiting firm. If asked to
choose between a 50- and a 40-year-old, Mr. Jaffe says he'd likely recommend
the 50-year-old as long as the candidate is "still hungry" and has a high energy
level. In making decisions about older candidates, their past experience typically
speaks for itself, he says.
"We don't have to guess what they're worth," says Mr. Jaffe. "They're either 'The
Real McCoy' or they aren't."
Yet numerous job hunters say that landing a new position becomes harder after
they turn 50. Many older candidates believe their difficulty in the job market is
due to age discrimination. If age discrimination hits at 50 -- or even younger -why are some 50-plus candidates avidly recruited to new roles? In an effort to
understand why some mature candidates are more attractive to employers than
others, CareerJournal.com interviewed older job hunters, recruiters and hiring
managers.
The Right Age and Stage
The most successful older candidates are those with histories of progressively
increasing responsibility in specific functions, say recruiters. By the time they
reach their 50s, they typically are senior managers with a long list of significant
accomplishments.
"The successful person over age 50 has reached a level of experience in his
career that is commensurate with where he's supposed to be," says Ted Martin,
president and chief executive officer of recruiter Martin Partners in Chicago. At
this point, he says, "you need to be competing for senior leadership slots or top
functional leadership positions, such as the head of marketing and sales or a
general-manager, chief-executive-officer role."
Less successful over-50 job seekers haven't reached that level and are now
competing for openings against 30- and 40-year-olds, who typically earn less,
may be more technically competent or exude more energy. "If you are over age
50 and at a vice president, director, or project-manager level, you are going to
have a fight on your hands, because the competition is tough," says Mr. Martin.
Employers Need Experience
Employers appreciate age especially when facing difficult challenges, says Al
Garcia, a former executive recruiter and now a senior human-resources
executive based in Temple, Texas. Age discrimination may seem to be at work
when an older candidate is competing against a younger person for "a younger
person's job, but not for jobs he should have risen to," says Mr. Garcia, who has
been an international HR vice president for Dole Foods Co. and is now vice
president of administration for Sagus International LLC, a large Chicago-based
schools-furniture manufacturer.
Sagus recently hired three 50-plus managers to work at its Texas facility: a chief
financial officer, a maintenance group executive and a first-line supervisor. For
financial roles in particular, candidates with some "snow on the roof" are
desirable because such people have highly valued experience, says Mr. Garcia.
In the San Francisco Bay Area, many companies are trying to hire experienced
older executives, says Michael Walsh, president and CEO of Actify Inc., a
developer of CAD-file sharing software. Mr. Walsh should know; the 58-year-old
is one of them. Last year, while considering offers to run two other companies, he
was recruited to head San Francisco-based Actify.
"Having a little gray hair doesn't hurt," says Mr. Walsh. "In fact, it helps because
companies are looking for people who have been through it."
Mr. Walsh previously was North American president and corporate vice president
for Navigation Technologies, a developer of route-guidance-map databases. In
July 2001, when the company decided to consolidate in the Chicago area, Mr.
Walsh opted to accept a golden parachute and seek another job.
Industry Switchers Struggle
Switching industries or functions sometimes sets executives back in their careers
so that by age 50, they haven't reached senior management ranks. Moreover, if
they are trying to change career fields, recruiters and hiring executives may
struggle to see "a fit" regardless of earlier successes. "The job market assumes
that your most recent position represents your most recent and best informed
decision of what you want to do and your competency," says Douglas B.
Richardson, an executive coach and career consultant in Narberth, Pa.
Some mature candidates believe this way of viewing candidates is nothing more
than age discrimination. Federal laws prohibit employers from discriminating
against candidates on the basis of age. However, employers are entitled to
consider any factor that supports evidence of a candidate's competence or
motivation, says Mr. Richardson. (Mr. Richardson is a columnist for
CareerJournal.com.)
"Anything that casts these issues in doubt – namely, whether you're good enough
and want the job badly enough -- will cause you to lose out to someone whose
evidence suggests more competency or motivation," he says.
Robert O'Leary, 51, rose steadily in the public-relations field to become general
manager of global affairs for Mobil Corp. for four years until its merger with
Exxon. He was vice president of public relations and advertising for Unisys Corp.
and had senior PR positions during 11 years at International Business Machines
and United Technologies Corp. After stepping down from Mobil in 2000, he spent
two years thinking about his next career move while serving on community and
professional boards, consulting and investing in several businesses.
While attending a board meeting for a professional group in January 2002, he
mentioned to other directors that he itched to return to the corporate world. One
passed his name to an executive recruiter who was seeking candidates for a
senior vice president, global communications, assignment for Goodyear Tire and
Rubber Co. in Akron, Ohio. Mr. O'Leary was recruited for the role and now
reports to Goodyear's chairman and CEO.
"I had the experience that matched up well with what they needed," says Mr.
O'Leary. "It was a function of them asking if my experience and accomplishments
were relevant, and that should be the measure of any candidate."
Compensation Concerns
Compensation plays a part, of course. By the time they reach 50, many
executives are earning six figures. If they're competing against younger
candidates, companies may be reluctant to hire them because a younger person
often can come on board for less.
"I was making a little over $100,000 in my last job," says Doug Smith, a 55-yearold former senior vice president and credit officer for a community bank in
Philadelphia who was laid off in October. "You could buy two kids earning
$50,000 for the price of me."
Some over-50 candidates volunteer to accept less pay for jobs they could do
easily, usually because they've already done them before. Usually, though,
they're told they're overqualified. The reason older executives don't get such
jobs? Simply because "companies don't believe them" when they say they'd
willingly take pay cuts, says William Morin, a pioneer of the outplacement
industry who now runs an executive-coaching firm in New York.
"If you told me you'd take an associate manager's job for $35,000 a year, I
wouldn't hire you because I don't think it's true that you'd be willing to work at that
low level," says Mr. Morin, chairman and CEO of WJM Associates Inc.
'Fire in the Belly'
Some older job seekers struggle because they don't show enough enthusiasm,
energy and commitment to learning -- something employers call "fire in the belly."
One senior staffing professional at a Fortune 500 company says her firm values
maturity and experience, but older job hunters who don't seem flexible or
interested in continuous learning won't get hired, she says.
For Mr. O'Leary, being on the sidelines for two years reminded him of his passion
for public relations, which he says was obvious when he interviewed for his
current role. "If you have that passion, you ought to show it," he says. "If you
don't, you'll miss the boat completely."
What About Looks?
When mature candidates can't land new jobs, they often believe it's because they
look old. They wonder if they should take steps to change their appearance.
Surprisingly, hiring managers don't bring up this issue when asked about the
differences between successful and unsuccessful 50-plus job hunters. Some
successful candidates say they don't try to look younger than they are. For
instance, Mr. O'Leary says he doesn’t try to disguise his age in any way. "That
would be a pretense," he says.
"I've never been concerned someone wouldn't hire me because I look old," says
Mr. Walsh, who exercises regularly, is an avid snow skier and tennis player and
races sailboats.
Seven Strategies
If you're 50-plus and have been pounding the pavement for months, what's the
solution? Recruiters and hiring managers say the following approaches and shifts
in thinking may be helpful:
Realize the situation isn't hopeless. As baby boomers mature, companies are
more inclined to hire older executives than most once were, says Jean-Louis
Alpeyrie, a senior partner with executive recruiter Heidrick & Struggles in New
York. Studies showing that older employees tend to be more loyal, detail oriented
and reliable than younger people are helping to change attitudes, he says.
Consider company size and type. Consider what you can achieve and go after it.
If you're a 50-plus mid-level executive, you'll have better luck finding a role at a
small company than at a large company, says Mr. Garcia. "The larger the
organization, the more difficult it will be for you to join it," he says. "But you might
be able to replicate your job at a smaller company."
Mr. Richardson notes that small firms or those in transformational or cutting-edge
businesses, such as the Internet, place less emphasis on age and organizational
levels. "I tell older job hunters to look for companies that don't automatically key
where you're supposed to be on the organizational chart to age," he says.
Be the solution. Mr. Garcia notes that companies "don't hire people, they hire
solutions." You'll have more success if you show how your skills can solve
problems than by asking to be hired because you have a list of impressive titles,
he says.
"General Electric Co., where I worked before, wouldn't hire me as a director of
HR, but they might hire me as a recruiter because I could solve that problem for
them, and they wouldn't have to groom me for the next job," he says.
Create a resume that makes you seem active and accomplished. Group your
earliest positions under one general category of early experience, says Mr.
Morin. When describing more recent jobs on your resume, say what you
accomplished and contributed rather than citing experiences, he says.
Stay abreast of technology. H. Thomas Bryant was recruited away from the CEO
role at StairMaster Sports/Medical Inc. in Kirkland, Wash., last year to become
president and chief operating officer of Tempur-World, a mattress company in
Lexington, Ky. During the past 11 years, Mr. Bryant, 53, has been a president or
CEO of several companies. He says he's never experienced age discrimination
and believes older candidates are valuable if their experience matches the
available position. "I try to stay up with technology," he says, "because we all
know it's changing every day." Additionally, for health reasons, he stays in shape
physically.
Be positive. Employers want to hire people with upbeat attitudes. Ask questions
about the company or challenge instead of talking about yourself, Mr. Jaffe
suggests. "A lot of my friends and colleagues who are jobless become negative,"
says Mr. Garcia. "They start saying, 'I'm too old.' I tell them if they act like that in
the interview, employers will see they're negative and think it's because of the
job. They're sending the wrong message and they won't get hired."
Stay or pay them back. If employers don't believe you'll work for less pay,
volunteer to sign a contract saying you'll stay with an employer for a certain
number of years or else pay back part of your salary, Mr. Martin suggests.
Mr. Richardson suggests asking to have your pay package structured so that
most of your compensation is in the form of incentives based on performance.
The package could be re-evaluated after you prove your worth, he says.
-- Ms. Capell is a senior correspondent for CareerJournal.com. She can be reached at
frances.capell@dowjones.com.
Despite Progress,
Age Bias Persists
By Dale Buss
Age discrimination became an economy-wide concern in the 1990s, when large
numbers of employers zealously cut labor costs and made occupational detritus
out of many older workers. Two years ago, it reared its ugly head again as the
battered economy gave companies another reason to fire high-cost staffers -who tend to be their most senior workers.
The most reliable indication that the issue has moved to the front burner in
America? Age discrimination has gone Hollywood. Actor Ed Asner, who is 72
years old, is leading a new group formed to lobby producers and networks for
more roles for older actors and to support related legislative efforts.
"Ageism is prevalent in our industry. It's like a silent killer, like cancer, and it gets
worse every year," said Peter Mark Richman, a 75-year-old character actor, as
he and Mr. Asner announced the launch of the Industry Coalition for Age Equity
in the Media. "The parts are not there. In television, what does a senior do,
unless you play a judge?"
Fighting Back
Barbara Morris agrees with the silver-screen silver-hairs. The 73-year-old
supermarket pharmacist in Escondido, Calif., has written a book called "Boomers
Really Can Put Old on Hold" (Image F/X, 2002). "Age discrimination will be with
us until boomers decide they're not going to take it anymore and mount a
revolution the size of the civil-rights movement," she says. "That's what it'll take
to change the attitudes and perceptions about aging."
Indeed, aggrieved older professionals of all varieties are fighting back. Just as
racial minorities and women did during the 1970s and 1980s, they're increasingly
battling termination with litigation. The number of age-discrimination complaints
filed in 2001 with the U.S. Equal Employment Opportunity Commission was up
more than 23% from 1999, making "ageism" the fastest-growing category of
discrimination cases.
These suits are beginning to get the attention of corporate executives, because
court age-discrimination awards are among the most expensive hits a company
can take over its employment practices. The median award in age-discrimination
suits -- the majority of which are brought by highly paid white males -- is
$269,000, compared with a median of $121,000 for racial-discrimination awards
and a median of $100,000 in sex discrimination, according to Jury Verdict
Research, a firm in Horsham, Pa. A disproportionate number of such cases
reach juries, as high as 70%, says Linn Hynds, senior partner in Honigman Miller
Schwartz & Cohn, a Detroit-based law firm that represents companies.
"Think about the composition of the average jury in the average city across
America," Mr. Hynds says. "Almost everyone will sympathize with a plaintiff on
the basis of age because jurors typically are older or on their way to getting old,
or maybe he or she has a parent or an aunt or uncle who bears an uncanny
resemblance to the plaintiff."
A 'Hidden' Problem
Older workers also are focusing on age discrimination in hiring. Now, only 10% of
age claims relate to hiring, even though Congress passed the Age Discrimination
in Employment Act in 1967 largely to head off discrimination in recruiting. But
61% of executive-level job hunters surveyed believe that age discrimination in
hiring is more of a problem now than a year ago, according to ExecuNet, a
Norwalk, Conn.-based job-search networking group for executives. (ExecuNet is
an alliance partner of CareerJournal.com.)
"The data say that once you hit 50, you'll get half the [job] interviews of someone
who's under 35," says Dave Opton, ExecuNet's president. "But it has remained
largely a 'hidden' problem because everyone knows that's illegal, and it's not the
kind of thing that people come out and wave the flag about."
Corporate executives and labor-law experts who work for them plead that the
trends that have exacerbated the age-discrimination issue are relentless and
dispassionate. They say that older workers are being axed more frequently now
because globalization, recession and other factors have increased economic
pressures to cut workers -- and no laws prohibit slashing first and hardest at the
highest costs. For similar reasons, many companies may be hesitant to hire older
workers who may cost more than younger counterparts.
Sure, company leaders recognize that this approach is an abrupt turnabout from
the labor-tight 1990s, when qualified employees of every type were scarce.
During these boom years, many employers-- especially those running serviceintensive businesses that require large numbers of white-collar workers -- staffed
up to keep pace with growth. "Everyone was a star during the 1990s in terms of
bonuses and salaries in that economy," says Lawrence Lorber, partner in
Proskauer Rose, a Washington, D.C., corporate-law firm. But because employers
were so busy trying to boost profits, Mr. Lorber says, few kept adequate records
of how white-collar workers actually were performing.
As companies try to unwind this runaway hiring and promoting, they're trying to
keep the burden from falling unfairly on older workers. Mr. Hynds's clients, for
example, generally "risk rate" every employee on their layoff lists to take into
account seniority, gender, ethnic background and other factors, including the
average age of those being downsized. Companies also are trying to avoid more
subtle patterns that could suggest age discrimination, such as a lot of younger
managers having to dismiss a disproportionate number of older workers.
Discriminatory Reviews
Nevertheless, several major companies have run into big trouble. Most notably,
perhaps, Ford Motor Co. last year backed away from a new evaluation process
that created the perception it discriminated against older workers. The
performance-rating system for salaried employees was a curve that rated the top
10% as "A's," the middle 80% as "B's" and the bottom 10% as "C's." The 1,800
"C's" were denied annual bonuses and merit raises and told they'd be dismissed
if they received two such annual ratings in a row. After an immediate outcry by
older workers, and a threat of lawsuits, Ford softened the system.
"The concept was right, but the method was probably flawed," says Mr. Hynds.
"The problem arose with direct application of the [productivity-weighting system]
to terminations, where it resulted apparently in disparate impact on older
workers."
Goodyear Tire & Rubber Co. adopted a similar system two years ago. When
Andy Redmon, a 57-year-old development engineer at Lincoln, Neb., plant,
received his evaluation, he took it hard. Mr. Redmon had figured he must be
doing something right for Goodyear -- for 34 years, he had worked at the factory,
which makes rubber hoses and other components for Big Three auto makers. In
fact, Mr. Redmon came in early most days and had received satisfactory
performance reviews -- when the company even bothered to review him.
So Mr. Redmon says he was shocked a few months ago when at the end of his
performance review, his boss said, "By the way, you're a C.' "
"I said, 'You're kidding.' He wasn't," Mr. Redmon says. His supervisor gave him
two reasons for the low rating: He never stayed later than 4 p.m., the official end
of the workday, and he was perceived as "resistant to change" because
sometimes he asked for explanations of work responsibilities.
"The evaluation didn't take into account that I had worked eight half-day
Saturdays in the previous year," Mr. Redmon says. "There were younger and
less-experienced colleagues in my department that were rated 'B's. And of the 18
people at Lincoln who were rated 'C's,' 14 were over 50 years old." In early
September, just as Mr. Redmon and co-workers at several Goodyear facilities
were planning to file a class-action lawsuit over the new system, the company
abandoned the plan in favor of a softer rating system.
Corporate attorney Mark D. Taylor predicts that age-discrimination cases "will
continue to be a growth industry, because they're one of the few courses of
action left for those who are over 40 years old and who are not otherwise in a
protected class. If you're a white male over 40, all you have to grasp for in a
mass termination is this," says Mr. Taylor, managing partner in Dallas for law firm
Baker & McKenzie.
Turning a Corner?
Yet others think that the pendulum already may be slowing or beginning to swing
against age discrimination, real or perceived. Some recruiters, for example,
believe that as former corporate extravagances are cut, including the huge sums
bestowed on green and inexperienced younger workers, executives are
grappling more with classic management problems. That has led them to place
greater value again on experience.
"Anecdotally, I'm hearing that more companies are understanding that maturity
matters in this market and that people don't buy hype anymore, they buy
products," says Herb Lin, director of a 2000 study for the National Academies of
Science. The study team investigated "claims of rampant age discrimination in
the high-tech industry." However, it couldn't determine whether staffers over 40
years old were treated differently because of illegal age discrimination or other
factors, such as the ramifications of a rapidly changing industry. In any event, Mr.
Lin says, the "new understanding" of the value of experience "may be translating
into better prospects for tech workers."
Ken Daubenspeck, managing partner for the Midwest region of Daubenspeck &
Associates, a Chicago executive recruiting firm, agrees. "Companies we're
dealing with are bringing in more thoughtful executives, people who can help
them really think through the most appropriate next step," he says. "I'm not trying
to say this has become a nurturing job market, but on the list of give-a-damns,
age isn't one of the highest anymore."
Economics and demographics are going to play a large role in this issue in the
near future. Even under moderate scenarios for economic growth in the next
several years, U.S. service companies expect to run short of labor by several
million workers as baby boomers retire and fewer younger workers move up to
replace them. This represents "a tremendous bulge of people entering into their
prime age-discrimination-victim years," says Howard Eglit, a professor of
Chicago-Kent College of Law who studies age discrimination. For that reason, he
argues, the number of age-discrimination complaints will continue to rise.
Yet other experts believe that older people who remain in the work force may
become highly coveted, especially as the economy expands. And more baby
boomers may be willing to work past traditional retirement age in part because
the bear stock market has wiped out much of the paper wealth they counted on
for retirement, says Frederick R. Lynch, a professor at California's Claremont
McKenna College who specializes in hiring issues. In fact, 69% of workers aged
45 to 74 already plan to work in some capacity during their retirement years,
according to a new survey by the AARP, formerly known as the American
Association of Retired Persons.
"If people were encouraged to work until they couldn't work anymore, there would
be less age discrimination," says Ms. Morris, the pharmacist-cum-author. "A lot of
the productivity potential that people traditionally have given up as they near
retirement age would still be there. And employers would see and recognize
that."
-- Mr. Buss is a journalist and editorial consultant based in Rochester Hills, Mich.
Why Appearance Matters
In a Post-50 Job Search
By Eileen Gunn
The issue crystallized for Roger Hall at a meeting of a support group for laid-off
professionals. Many of the men in the group were around his age, 59 now, and
Mr. Hall couldn't help but notice that some were "still energetic and outgoing,"
while others "were really out of shape," he says. "I thought about these tiredlooking guys being interviewed by people who were younger and still very
energetic."
Mr. Hall, a marketing executive who had been laid off from Marconi Telecom US
in April 2001, says the comparison "strengthened my resolve," to keep going to
the gym several days a week. He also bought new suits and asked a friend to
help him update his eyeglass frames. Within a year of being laid off, with the
economy still dragging, he landed a new job at a communications firm in New
Jersey.
"They want to know that you're going to look sharp and project energy when you
meet clients," Mr. Hall says. On a scale of 1 to 10, looking fit and trim was
"probably a six, in terms of helping me to get a job."
The hardest part about looking for a job when you're over 50 is that you're no
longer 40…or 35…or whatever that magic age is that suggests bushy-tailed
youth to you. It can seem as though every hiring manager sees your slightly
crinkled brow and immediately wonders if you're up on the latest industry trends,
if you're willing to work past five o'clock, and whether you'll have a clue as to
what a BlackBerry pager is.
It's tempting to try to turn back the clock -- just far enough that these questions
don't even come to your interviewer's mind. In this latest, tough job market, some
people are doing just that: 30% of men and 14% of women who had cosmetic
surgery in 2001 say the decision was work-related, according to the American
Academy of Facial Plastic and Reconstructive Surgery in Alexandria, Va.
"A few years ago, we had all these dot-commers who were young, and older
people felt pressure from below to look more youthful," says Richard Gregory, a
plastic surgeon near Orlando, Fla. "More recently, there have been all these
layoffs, and people are having things done to remain competitive in that
environment."
Career coaches acknowledge that looking younger -- or looking less old -- can
shorten a job search if you go about it in a sensible way and have realistic
expectations (and if all the other parts of the equation, such as your job history,
are what they should be). "Older men and women who are fit definitely have
fewer re-entry challenges," notes Joyce K. Reynolds, a business coach in Fort
Lauderdale, Fla.
For some, looking younger does mean literally knocking five or 10 years off their
bodies by dyeing their hair or getting cosmetic work. (One surgeon reported that
breast reduction was a common request among aging executive men.) But for
others, such as Mr. Hall, it's more a matter of drawing attention to qualities they
still possess, but that are too quickly associated with youth -- vigor, longevity and
the ability to generate fresh ideas.
Projecting an Image
The desire to project a youthful image is by no means limited to job seekers.
Dixie Taylor, an Orlando real-estate agent who's just on the cusp of 50, recently
had an eyelid lift -- a popular procedure among the 50-plus set, according to
several doctors. Ms. Taylor reports that a tendency to have puffy eyes became
more exaggerated as she got older, and she had come to dread seeing a tiredlooking face in the mirror all the time. She felt that her ability to win new clients
was compromised by her looking tired.
"I have lots of experience in this market and lots of energy, as opposed to
younger agents, who just have energy," Ms. Taylor says. But as one gets older,
actually having lots of stamina and projecting that image can be two different
things. So she had the operation. "I've done a lot more business since then," she
says. "I feel more confident now; maybe I capture more people because of that."
Still, there are fields, like technology and media, where being cutting edge is
paramount, aging is taboo, and executives really do want to stall time.
Ronald Iverson, a plastic surgeon in Pleasanton, Calif., outside of San Francisco,
has a steady flow of patients who work in Silicon Valley. "I had a woman say to
me the other day, 'I'm 50 years old and everyone around me is younger, and I
don't feel good at all,' " Dr. Iverson recalls. Though the woman reported
exercising regularly, she still wanted to discuss several age-erasing options,
including laser resurfacing (to diminish wrinkles) and a full facelift. "She's
someone who's afraid of losing her job and is looking for a competitive edge," Dr.
Iverson says.
When is plastic surgery appropriate? Only you can decide whether it's worthwhile
for you. Think about it as an investment in yourself: Weigh what you'll have to put
in (the cost of surgery, the time it might take to heal) against what you hope to
gain (more confidence or self-esteem, or a competitive edge).
Take stock of your expectations to make sure they're realistic: Fewer wrinkles or
a better chin won't help you land jobs for which you're simply a poor fit. Dr.
Gregory notes, "A person who isn't taking care of their health in general and
expects [cosmetic work] to really change everything is a poor candidate [for
plastic surgery]."
Trying Too Hard
Image consultants warn that people who try too hard to be youthful risk drawing
attention to the age they're trying to hide. A favorite pet peeve: Men who dye their
hair "shoe-polish black" with a do-it-yourself kit instead of springing for more
subtle professional hair coloring.
Gail McMeekin, a career coach in the Boston area, had a female client who had
stalled while moving up the management ranks in the not-for-profit sector.
"She was 56 years old and was trying to look cute," Ms. McMeekin explains.
"She wore short skirts when she needed expensive-looking, professional-looking
dresses to get into that corner office." Ms. McMeekin persuaded her to lengthen
her hemline, and she eventually got the bigger job, with a bigger budget to
manage, that she'd been looking for.
When it comes to hair and clothes, strike a balance between up-to-date, ageappropriate, and what's accepted in your field. Ms. Reynolds points out that if
your haircut or eyeglasses or shoes look 10 years out of date, interviewers will
wonder if your business skills are out of date, too.
Don't be afraid to seek feedback on your new appearance from friends, family,
savvy salesclerks and even professional image consultants. Damian Birkel, who
counsels out-of-work professionals in Winston-Salem, N.C., says a salesperson
once suggested he toss out all his traditional blue dress shirts. Why? They
clashed with his gray hair and drew attention to it. He wears gray shirts instead,
which blend with his hair and subdue it. The new look is suitably professional, but
he says he feels more put-together and, in fact, younger.
Career coaches also warn that older job seekers should be realistic about how
much their nips and tucks, new glasses or darkened hair will help them. "These
things will burn five years off, not 15," cautions ArLyne Diamond, a professionaldevelopment consultant based in Santa Clara, Calif.
'A Perceived Threat'
If your last salary had been at the pinnacle of the range for your position, for
example, or you're talking to hiring managers who are all much younger than
you, the problem might not be age, but the accumulated experience that goes
with it. "It's an issue of a mature person vs. a less experienced person…and
you're a perceived threat," says Ms. Diamond.
Still, as Ms. Taylor and Mr. Hall concluded, you're more likely to get the work you
want -- and the salary you deserve for the experience you have -- if you look
bright-eyed and enthusiastic. Darrick Antell, a New York City plastic surgeon who
counts CEOs and investment-banking executives among his clients, made this
comparison: If you were planning to sell a cool old car, he explains, "you'd wax it
and shine the chrome and vacuum the inside, so it looks fit and well-maintained
instead of old and tired."
In other words, if you're a fit and well-maintained job seeker, hiring managers are
less likely to wonder how many miles you have left -- and more likely to see you
as someone who's been around the block a few times, but is clearly still ready to
roll.
-- Ms. Gunn, a free-lance writer in Brooklyn, N.Y., specializes in management and
financial issues.
What to Do When You're
Told 'You're Overqualified'
By Gene J. Koprowski
Just two years ago, 58-year-old Alan Pike and his colleagues were turning away
business at their Boston-based PR agency, Collaborative Communications Inc.
Today, Mr. Pike is an out-of-work executive, looking for a position as a vice
president at a comparable company. Since 2001, he has spent countless hours
trolling the Internet, seeking a new gig. He's even expanded his net and sought
out jobs that were not quite executive level, but he's been rebuffed and
sometimes told he's "overqualified."
"It seemed like most of the positions available are junior," Mr. Pike says. "The
ads say, 'Must have three-plus years' experience and a valid driver's license.'
That's code for a kid with a car."
In the current employers' job market, many job applicants are complaining they're
being told: "You're overqualified." But recruiters say that executive-level
candidates shouldn't let this brand of rejection derail their job searches.
"Generally, the term 'you're overqualified' is a cop-out," says Shel Hart, vice
president of Spherion Corp., a Ft. Lauderdale, Fla.-based staffing-services and
consulting firm that recruits interim executives. "We're in an increasingly talentdeficient marketplace, even with the current unemployment levels. That anyone
in this market would say that I want somebody underqualified or just on par
would be fairly silly."
Tips and Tactics
Silly or not, older executives often hear that answer during interviews. But such
job seekers can adopt strategies to cope with these rejections. For instance,
recruiters suggest, the recent corporate scandals give executive job seekers an
opportunity to position themselves as experienced and ethical, as reflected by
their past roles.
Firms these days put "a high premium…on their reputation, especially at the
senior level," says Barry Honig, president of Riskon Inc., a Tenafly, N.J.-based
executive recruiter for the financial-services and pharmaceutical industries. So
it's in an employer's interest to demonstrate that "someone of impeccable
integrity is watching the store," he says.
Additionally, executive recruiters say, candidates should strive to gently coax
more information out of interviewing managers. If told they're overqualified, they
should ask why. The answer might be surprisingly simple. "Maybe the prospect is
[unintentionally] giving off signals that they're not really interested in the job,"
says Patti Branco, president of Management & Training Solutions, a Ventura,
Calif.-based employment consulting firm which advises firms in the financialservices sector.
Ms. Branco says that when interviewing prospects she often asks whether they
would accept a job at the level above the job she's interviewing them for. "That
backs them into an honest answer," she says. "You can see what their thinking
is."
'Risk Management'
But be sure to stress that the job fits your career goals as well. Employers are -sometimes rightly -- leery of someone taking a position that's a huge step back
for them, rather than an onward-and-upward career move, says Renee Arrington,
a partner in the Ft. Worth, Texas, office of executive recruiter Ray & Berndtson.
Some employers worry that highly experienced applicants might jump ship if
something more suitable comes along, says Ms. Arrington. "So this is riskmanagement for some companies," she says, adding that they wonder how
happy candidates will be in lesser roles. "If the company decides to make an
investment in you for which you may be overqualified, there's the concern that
you might become restless, or you might not find the work challenging," says Ms.
Arrington.
As a job seeker, you have to overcome employers' ingrained misperceptions. Do
so with facts and excellent communications skills, recruiters suggest. "I've
interviewed people who've had 10 years of sales management experience and
simply want to go back to being a broker," says Ms. Branco. "But they've
presented that to me in an honest way -- and showed that they have a real
enthusiasm for selling. That works."
Hiring managers sometimes more favorably view applicants who are willing to
take a step down to make an industry switch. "That way, people know that you're
looking for the opportunity to learn the business," says Ms. Arrington. "It's a little
more acceptable. It's a learning experience." That's been the case for many
executives in the telecommunications and Internet industries who are moving into
other fields, she says.
Proving Your Worth
If the hiring manager still balks, other tactics may be worth trying. Some
executives are offering to work in new jobs as part-time hires for, say, 30 hours
per week, to show employers their serious interest in making the move. "Maybe
you can come in as a consultant on a contract with that employer," says Ms.
Arrington, who has placed executives in temporary jobs with the expectation that
the roles would grow into full-time positions in the future. "You can then
demonstrate your skills and your value on a defined project. Once you've made
your connections and built your own network in your company, there's a much
higher likelihood that [the job] could become a full-time role."
Mr. Pike is consulting for a number of companies while keeping in touch with his
network of contacts. "There is a company or organization out there that will come
into my crosshairs, and we'll both know relatively quickly that we need each
other," he says.
Some job candidates may be concerned that the "overqualified" label may be a
code word for age discrimination, but Burlingame, Calif.-based job-search
consultant Carole Martin thinks the label "overqualified" isn't used in this regard.
It's possible that some candidates are passed over because they seem out of
touch with business conditions, she says. This may be because they aren't up on
the latest industry lingo, and this shows how dated their knowledge is. "Keep
abreast of the latest jargon -- talk their talk," says Ms. Martin. "And be concise
and to the point. Use relevant information, not old industry 'war stories.' "
Jeff Christian, president of the Cleveland-based executive recruiter Christian &
Timbers, advises candidates arrive at interviews with the mindset that they're
already employed by the firm and have 20 new ideas to help make money or
increase market share. "The way you can set yourself apart is to ask insightful
questions, give insightful ideas and get the other person talking about the
business and industry," he says. "That gets them excited about you. [Employers]
are looking for people who are energetic and passionate, can get things done
and are intelligent. If you get them excited, the question of whether you're
overqualified will never even come up."
Indeed, Mr. Christian says that he has broken the code of "you're overqualified,"
and its meaning can be easily understood by savvy executive job seekers. "It's
code for people they don't like; people who are dumb; people who can't get
things done; people they think have low energy; people whom they think are
boring; or people they would not have fun working with," says Mr. Christian. "It
covers all of that. If you're dumb enough to accept that answer, you shouldn't
have the job to begin with."
-- Mr. Koprowski is a free-lance business journalist in Chicago.
Why That Post-50 Job
Is Getting Harder to Find
By Steve Weiner
Read most advice for over-50 job seekers and you might conclude that the
successful job search for these individuals is simply a matter of sprucing up,
looking energetic, presenting yourself humbly and, well, waiting for the offers to
roll in.
After all, people with your advanced skills, knowledge, judgment, experience and
executive presence must be several times more valuable to any right-thinking
company than they were, as mere corporate striplings, 25 years ago. And we've
all heard stories of post-50 executives, who, after being dumped from cushy
corporate cocoons, have found rewarding and fulfilling new careers through
insight, tenacity or serendipity. (I got a kick out of the article about the guy who
won his new job by displaying a photo of himself as a robust mountain climber.
What a stud.)
But such stories are exceptions to the rule. The truth is that your chances of
finding a great new job drop sharply with each passing 50-plus year, and for
some very good -- and very short-sighted and heartless -- reasons. It has to do
with the three great motivators of corporate cultures -- money, fear and prejudice.
As a former vice president for a $6.5 billion company, I found money to be a
frequently insurmountable hurdle to hiring extremely competent and superbly
experienced individuals. Companies want the best possible team, and the
practice of "top grading" -- or always hiring someone more skilled than the
person being replaced -- is all the HR rage at certain management levels. Even
so, no matter what job is vacant, budgets and fiscal pressure never allow firms to
pay more to replace a departed associate, and older applicants are presumed to
be looking for higher pay. If they're not, the assumption is that older applicants
must be flawed in some possibly hidden but, no doubt, debilitating way. The only
exception is the senior-most ranks of management, where jobs are few, salaries
and benefits are egregiously excessive and buddies are selected first.
The second factor working against applicants older than 50 is fear. Not your fear
that you won't find a job, but the quite natural fear younger executives have that
older men and women may be hard to manage. The thinking, which makes no
sense to those of us old enough to have a little perspective, is that people over
50 often know what they are doing. Their skills are fully developed. Their
judgment is keen. They aren't prone to suffer rah-rah style corporate
environments. They are less likely to simply follow orders, no questions asked.
It's the exceedingly rare 30- to 40ish manager who wants someone so
accomplished on their team. It's much more practical to hire an eager, energetic
youngster who will follow orders and willingly agree that two plus two really does
equal a corporate five.
Most ambitious young managers will find plausible reasons to reject the older
candidate. She or he is "overqualified," or maybe they learned "bad habits" from
past jobs. The true motivation, though, is abject fear -- that the experienced
applicant will look better than the boss, that the knowledgeable job candidate will
too often ask that key question, "Why?" Conclusion? Hire the kid.
Reason No. 3 for the dearth of job opportunities for the 50-plus set is prejudice.
Age discrimination is the norm in corporate America. Young people, who usually
do the first-level screening, think of their parents and conclude that older
applicants must be just like them -- dated, hopelessly lost in modern culture,
short of energy and not fully in possession of modern mental capabilities. Young
managerial and HR hotshots practice systematic age discrimination in the name
of keeping the work force fresh, when, in reality, the motivation is plainly and
simply prejudice.
So, what does this mean for your job search? By all means, do the networking
that outplacement specialists and career counselors prescribe. Ceaselessly
search for jobs, both online and off. Conduct those "informational interviews" that
you're advised to pursue. Ponder educational opportunities. Make the resume
sing like Pavarotti. Whenever possible, smile. Wear the clean shirt, creased
slacks, polished loafers.
Will these steps overcome the triple barriers of tight budgets, managerial fear
and age prejudice? They can and sometimes do.
But stay absolutely realistic. Those positive professional traits that you value
most about yourself may be exactly the same factors that make you toast at
many companies. Prepare emotionally for a bewildering and sometimes
disheartening lack of interest. But even when it's difficult to do so, remember, that
at 50 and beyond you really are at the height of your professional and creative
powers. Never, ever let anyone, especially a young someone, tell you otherwise.
-- Mr. Weiner is happily self-employed at Readmore Communications Inc., a Chicagobased corporate-communications consulting firm.
Dispelling the Myths
That Hold Back Seniors
By Robert K. Critchley
Older workers are easy to typecast because the myths persevere:

They're less effective on the job than younger people.

They don't deal well with change.

They look to the past, not the future.

They examine and re-examine, taking forever to reach a decision.

They want to be rewarded for loyalty, not performance.
Like all stereotypes, these views have harmed older employees and contributed
to the notion of the unemployability of seasoned people. In fact, if you substitute
"experienced" for "older" and view the situation from that perspective, you can
dismiss the stereotypes and turn the myths into strengths.
No matter what your age, you can dispel the myths and put your experiences to
good use by demonstrating flexibility, showing the right attitude in a range of
situations, remaining open-minded and keeping yourself alert to new ideas and
new ways of thinking. Simply being aware of the valuable assets you've
developed throughout your career lets you position yourself to make valuable
contributions when working with younger workers. This also can help you to gain
an advantage when competing against them.
You've certainly had many valuable experiences throughout your career. Think
back to achievements for which you were complimented or perhaps even
promoted. No doubt you also can recall events and situations that didn't work out
quite so well. Don't ignore them. Realize that they too represent important
learning experiences.
The key here is that because you've lived life and developed some level of
business wisdom during your career, you can draw on your past to plan and take
advantage of your future. There's no substitute for experience. It gives you a
natural advantage over less experienced workers, but only if you use it wisely.
Capitalize on Your Experience
The human brain, a three-pound mass of interwoven nerve cells that controls our
activity, has an amazing capacity to store information. Still, estimates suggest
that we use only about 10% of our brain's capacity. The more we learn, the more
the brain can retain for future reference.
The simple fact that you've been working for more years gives you a potential
advantage over younger workers. Think of the times you've come up with a
solution to a problem by drawing on a recollection of an experience that has
occurred in your past, perhaps even a decade or more ago.
And don't think that you can learn from only successful experiences. You've also
learned from your mistakes and the mistakes of others. In retrospect, the lessons
that offer the greatest wisdom come from the experiences that didn't work out as
well as we'd hoped or planned.
One of my most indelible career experiences came from my days in banking,
when I recommended a loan for a customer for the development of a hotel. The
development didn't proceed as well as planned, and the customer couldn't repay
the loan. I lost a great deal of sleep over the situation, treating it as if it was my
own money at risk. Eventually, I resolved the problem, thanks to significant
research, meetings and negotiations. The asset was sold to another company,
and at no loss to my bank. It also was good news for the customer, as we were
able to work closely with this person in a supportive manner and stave off
financial ruin.
The lessons I learned during those months never left me. The experience made
me a better banker. From then on, I was careful to take all necessary precautions
to prevent the same situation from happening again. Over time, that resulted in
much higher profits for my employers. I still apply the same caution in any
business dealing today. It doesn't mean I don't make mistakes. It's just that the
mistakes are smaller than they otherwise might have been.
When I went back to college to complete my economics degree after getting
married, I was bombarded with information. I wondered how I could ever apply so
much information in real life. I remember one of my lecturers telling me it was
highly likely I'd only use 5% of what I was learning in the business world. This
was extremely discouraging. Was 95% of what I was learning really going to be
wasted?
Following college graduation, my career exposed me to a wide range of banking
in different countries around the world. Although a great deal of what I'd learned
in college wasn't relevant right away, I now look back and realize I've been able
to draw on the majority of that knowledge, applying it at key points in my working
life.
-- Mr. Critchley, executive vice president of global relationships and acquisitions at DBM
Inc., is the author of "Rewired, Rehired, or Retired?" (Jossey-Bass/Pfeiffer, 2002), from
which this article was excerpted.
Age Can Affect How
You Find Your Next Job
By Shu Shin Luh
Staff Reporter of The Wall Street Journal
From The Wall Street Journal Online
While older executives still depend heavily on networking to find a job, most of
those younger than 40 rely more on headhunters, the Internet and
advertisements, according to a global survey by human resources consultant
Drake Beam Morin.
Even in Asia, where job-hunters of all ages have long relied on professional and
social ties to find work, only 43% of the 1,140 executives surveyed landed new
jobs because of networking. Close to 21% of executives looked for work through
a headhunter; 35% used a combination of the Internet and advertisements to
secure a new job, the survey indicated.
Human resources consultant Drake Beam Morin surveyed more than 15,000
executives in 21 countries, all of whom were laid off in the past year by their
employers. Companies often hire DBM to counsel laid-off employees. The firm
runs networking workshops, practice interviews and resume seminars to help
them. Many of the laid-off executives haven't sought employment in a decade,
and they need to reacquire the skills needed for job hunting before re-entering
the job market.
"A person at 30 will not have the kind of network of a person who is 45," says
Bob Critchley, president of Drake Beam Morin's international division. "We try to
encourage younger workers to expand their networks, to use their parents and
relatives, look at previous employers and clients, to think much wider."
According to research by DBM, an executive, on average, takes between four to
six months to find a new job. In the past year, close to 90% of DBM's clients
came from companies that were downsizing, merging or reorganizing.
Mature workers, those 55 years or older, were the biggest victims of downsizing,
according to DBM's survey. Because these workers often earn more than
younger managers, companies opted to reduce payroll by cutting fewer but more
senior managers, said Mr. Critchley, who added that companies often don't
realize until later that they are losing valuable knowledge when mature workers
are dismissed.
Workers younger than 55 years old tended to be dismissed because of a merger
or acquisition.
Since laid-off younger workers tended to have financial obligations such as
mortgages, car loans and tuition for their children's schools, they looked for fulltime employment more aggressively.
Older managers, on the other hand, had more financial flexibility, choosing
instead to take on part-time consulting or free-lance jobs. Some executives in
their 40s and 50s - about 16% of them - opted for self-employment. They also
took twice as long to identify and secure new jobs than their younger
counterparts, and had to prepare for the 50% chance of seeing a pay cut in their
new posts.
Within the pool of executives who did return to the full-time work force, almost
half of them looked outside their old industries for job opportunities. Often, DBM
consultants say, their clients were in the wrong industry to start with. "People are
sometimes forced to re-assess," Mr. Critchley said. "They have to realize that
their skills are transferable and they can find something that fits them in a
different industry."
How They Found a Job
Generation Baby
Mature Average
X
Boomer
Network/contact 30.8%
47.2%
42.0%
43.7%
Search
firm/agency
29.3%
19.4%
8.0%
20.8%
Advertisement
29.3%
12.1%
22.0%
16.0%
Other
10.7%
21.2%
28.0%
19.5%
How to Make Interviewers
See a More Youthful You
By Joann S. Lublin
Staff Reporter of The Wall Street Journal
From The Wall Street Journal Online
Edward R. Mills was wrapping up a job interview with New York's publictelevision station when station president Bill Baker asked how he spent his spare
time. Mr. Mills said he competed in tennis tournaments and did "a little bit of
hiking."
Then, the candidate whipped out a recent photo of himself hiking at the 14,000foot level of snowy Mount Whitney in California. Within hours, WNET-TV offered
him the post of head of membership. "This guy had plenty of energy," Mr. Baker
recollects. At that time, Mr. Mills was 61 years old. Today, nearly three years
later, he still enjoys his demanding job.
Success stories like his offer inspiration to older job seekers everywhere. Amid a
tide of layoffs, even middle-age baby boomers increasingly face bias in the
workplace.
Age becomes a significant hiring-decision factor at or before age 50, more than
half of 199 job-hunting executives reported in a recent survey by ExecuNet, a
career-networking organization in Norwalk, Conn.
Turning gray need not cloud your employment prospects, however. Here are four
ways to deflect attention from your 40-plus years when you're looking for work:
Downplay ancient history on your resume.
Only disclose the dates of jobs held within the past 10 or 15 years and omit the
year you graduated from college, some career experts suggest.
When Sam Sanders was job-hunting in early 1999, the information-technology
veteran prepared a chronological resume covering positions back to 1985. He
summarized his quarter century of pre-1985 employment without any dates. "I
wanted to get in front of [employers] to sell myself," he explains.
The gambit worked. At age 63, Mr. Sanders became vice president of sales for
OpenOrders, a small maker of Internet-commerce software in Newton, Mass.
"He probably would not have gotten in the door" with a full disclosure of his job
history, admits David Levitt, then the concern's 47-year-old CEO. "You don't want
to highlight what could be held against you."
International Business Machines acquired OpenOrders last fall. Mr. Sanders now
works as a salesman for IBM -- where he began his career in 1960.
Hiding your age can backfire, however. Rodney Struhs, another IT industry
veteran, shortened his resume to cover just 12 years during a lengthy job search
last year. "I got a lot more calls," except they were for entry-level positions, the
Salt Lake City project manager remembers.
Some employers attracted by his abbreviated resume were shocked to meet the
balding, stocky prospect, expecting someone younger than 47 years old. These
hiring managers typically rejected him by declaring, "We're not really looking for
someone with as much experience as you have."
A Phoenix technology-consulting firm finally hired Mr. Struhs last January. He got
laid off in June. He recently posed for a CIO magazine photo in which he boldly
held a cardboard sign that read: "Aging IT Pro Seeks Employment."
Take steps to look younger.
"You're not supposed to dress like a 20-year-old," advises Kate Wendleton,
president of the Five O'Clock Club, a national career-counseling organization
based in New York. "But if you look really, really old, it's not good. You need to
look fresh."
So update your wardrobe. Buy new shoes. Dye your gray hair. Lose weight.
Leave your big battered briefcase at home. Fix those baggy eyes.
Stress your high energy level and active lifestyle.
Even hiring managers biased against older applicants can change their minds,
notes Dave Opton, CEO of ExecuNet. You might take the lead, for instance, by
citing the frequent business trips you recently took for a successful product-line
launch.
During a job hunt earlier this year, sales manager Mark Rigor exuded youthful
enthusiasm by always asking interviewers: "Is there an opportunity in your area
to bike? I'm a serious biker."
The Scottsdale, Ariz., resident, who turned 49 last month, rises at 5 a.m. every
day to ride 10 to 30 miles. In early June, Mr. Rigor became a sales
representative for Sure Alloy Steel, a design, engineering and fabricating concern
in Madison Heights, Mich.
Offer evidence of your up-to-date skills and willingness to mentor younger
people.
By staying current in your field, you demonstrate an adaptability that helps
overcome a widespread misconception about 40-plus jobseekers. You also will
appear flexible if you tout your multiple role switches, experience as a team
player and ease about working for a younger boss.
None of these strategies will succeed, however, unless you truly hunger to work
for a significant period. "Put yourself in the 20-something mold by asking
yourself: 'What am I striving for?' " suggests Michael Skok, the 40-year-old
chairman and founder of Alphablox, a Web software concern in Mountain View,
Calif.
He says he rejected a contender for its No. 2 spot in 1999 because the wealthy
applicant "didn't need to be successful" again and planned to retire in a few
years. The candidate's age? 43.
Will Age Fears
Destroy Your Career?
By ALAN DOWNS
Are you afraid of becoming obsolete? Fear of maturity can destroy an executive’s
career potential and keep downsized 50-somethings from participating in the
New Economy.
Several years ago I wrote a book about downsizing. As I traveled the country, I
often encountered executives (mostly men) in their 50s and 60s complaining that
the corporate world no longer had a place for them. Indeed, much of my own
research had uncovered that large numbers of older -- but hardly retirement age - professionals were becoming unemployed through layoffs. It seemed to me to
be a paradox. After all, most senior executives across this country sport a fair
amount of gray hair (if they have any hair left). So why would they be
discriminating against their peers?
What I have come to discover is that the problem is much more complex. Most
companies that I work with are truly eager to hire experienced (read: older)
professionals. The problem, however, was expressed to me this way by a senior
vice president of one of America’s largest corporations:
"I jump at the chance to hire older workers, I really do. But a fair number of the
older workers I interview make it very hard to hire themselves. It’s almost as if
they come into the interview with a list of all the things they won’t do. Sort of like
the housekeeper who starts out saying she doesn’t do windows or laundry. Hell,
there’s nothing around here that I won’t do myself if I need to! Why should I hire
someone my own age who is sending off all kinds of signals about what they
won’t do at the start?"
This same senior executive told me that motivated older professionals are often
the best hires he makes, and he recalled a number of specific examples. They
bring experience and stability -- two important assets that most younger
professionals don’t have. They’ve already been through the school of hard
knocks and earned some pretty impressive degrees there. If they’ve survived that
many years in a profession, they had to learn a little something along the way.
Over and over again I find the same story to be true. Companies are eager to
hire and promote older workers. So why are so many of them "early retired"?
One early retiree explained it like this: "I don’t want to prove myself to a company
again." In other words, he didn’t want to work that hard to move up the ladder -he wanted credit for what he had done at another company during another time.
So instead of buckling down to a new job, he opted to retire with a little less than
full retirement and to exit the working world.
It may be bemoaned, but this is a fact about working today: No matter how old
you are, how prestigious your degree is or how well-connected you are, you’ve
got to produce to stay employed. The days of simply showing up at the office to
collect a paycheck are over. This is especially hard for some people to accept
because they watched other professionals before them slack off as they grew
older. One older executive said it best: "It used to be a rite of passage to slow
down the older you got. People thought it was respectful to let you be mediocre."
The easy answer is to say that the business world is prejudiced against older
professionals, but most of the evidence is to the contrary. Even Dilbert lampoons
the fact that gray hair is "executive hair." Our culture still pays heavy respect to
the wisdom and authority of older people. Think about it. If you were going to
invest most of your life savings in only one company, would you feel more
comfortable with a company run by a 20-something CEO or one run by a 50- or
60-something? I think most of us would take the latter. The 20-something might
quickly make a great deal of money or, with the same speed, lose all of our
money, but we’d trust the 50-something to be more careful with our investment.
So the point is this: There's no justification for the fear of aging. The vast majority
of us will stay healthy, alert and active until long after we’ve reached an
acceptable retirement age. The older you get, the more practice you have at
being great. If you want to work and are willing to accept a paycheck that
matches your performance and not your age, you can.
The hard truth is that the fear of aging is something that starts within us and that
we project on to the people around us. Because we worry that we're somehow
diminished with age (or will be diminished with age), we begin to create that
reality around us. Like with all the fears we've discussed, the more you fear
something, the more energy you put into creating what you fear.
Beyond simply worrying about employment as we age, the fear of aging can
have a far more intrusive effect on our career. Because this fear is so intimately
personal, it strikes at the core of what we believe to be true about ourselves and
the meaning of life. When those issues aren’t resolved, the fear of aging can
seep into our careers and ultimately destroy them.
It’s Never Too Late to Start
The fear of being obsolete can convince you that you're too old to start a new
business or to try another career track. You tell yourself that at your age you’d be
better off sticking with what you know rather than chasing a dream.
A fresh start is possible at any age. There's no reason success cannot be yours
unless you limit yourself. You're only obsolete when you choose to stop learning
and not before.
Breaking the Cycle of Fear
1. Acknowledge and confront the irrational beliefs that underlie your fear of aging.
Irrational Belief No. 1: My abilities diminish with age.
Some of the most talented, hardest-working executives in the world are over 70
years old. They love what they do and only get better as the years go by.
Everywhere you look, you see older executives achieving unprecedented
success. Consider Alan Greenspan, chairman of the Federal Reserve; Robert
Pew, chairman of Steelcase Inc.; and David Murdock, CEO of Dole Foods, all of
whom were in their 70s at the time they held these positions. The list of highly
successful, older executives is long indeed. The only thing that limits these
executives is their desire to postpone a comfortable retirement. As long as they
want to work, they'll be extremely competent.
If anything, the practice that comes with age enhances your talents. It takes a
great deal to rattle the cage of someone who has had a long career. That kind of
wisdom and experience is priceless. The bottom line is this: You’re limited by
your age only if you believe your age limits you.
2. Make a conscious effort to push past the fear even though you continue to feel
it.
When you come to terms with the meaning of your life, you make peace with
your aging and ultimately your demise. Your life becomes directed and focused
rather than a loose collection of activities. What is important in life becomes
clear, and you work toward that end. You may work long and hard, but you also
understand the importance of quiet contemplation, of spontaneity and of peace of
mind. When you are fleeing the loss of self, you cannot afford these moments of
respite, lest you become consumed with the feeling of fear.
Until you confront the meaning of life, you cannot reach your highest potential.
The dark cloud of death hangs over you, preventing you from allowing the
powerful river of life and talent to flow from you. Instead, you waste energy on
hyperactivity, domination and over-control.
The meaning of life is a deeply personal lesson that no one can teach. Rabbis,
ministers, therapists, teachers, family and friends can all help, but the ultimate
answer comes from within. There's no substitute for the struggle to understand
and accept one’s purpose in life.
3. Take positive action in the direction of your fear.
How have you limited yourself because you thought you were too old to learn
something new? The truth is you may not want to learn something new, but you
can if you choose. Your beliefs, not your age, limit you.
What is it that you have always wanted to do, but have given up? Remember
how you wanted to sail around the world or write a novel? You’re never too old to
try, much less succeed. By giving yourself permission to try, you will set yourself
free in all areas. All you need is to show yourself just how much you can
accomplish.
-- Mr. Downs is the author of "The Fearless Executive" (Amacon, 2000), from
which this excerpt has been adapted.  American Management Association
International, www.amacombooks.org.
Retiree Turns Passion
Into a New Career
By Joann S. Lublin
From The Wall Street Journal
A DREAM CAREER deferred need not be a dream denied.
Just ask Joe McMahon Jr. He is belatedly realizing a youthful ambition by
becoming a published songwriter at age 83. He wrote eight of the 10 love songs
on his first compact disk, "Secondhand Heart For Sale," more than 60 years ago.
Hundreds of U.S. radio stations already have aired tunes from the CD, a
collection of Forties-style torch songs released in January. A big retail push is
planned by his CD's distributor, Taragon Records Co. of Deer Park, N.Y.
Mr. McMahon, who looks younger than his years, is a former New York
advertising man and executive recruiter. He launched his third career even
though he's now legally blind and battling two types of cancer.
Mr. McMahon's remarkable experience offers inspiration to us countless "tree
huggers," headhunter lingo for infrequent job hoppers. We're too timid to quit
long-time employers, much less risk plunging into more creative pursuits.
In his only solo on the CD, Mr. McMahon seems to express the fears of potential
career changers. "It just ain't sensible for us to try," he croons.
Mr. McMahon typifies people with late-career triumphs. Among a group of 150
high achievers aged 65 to 101 studied by researcher Lydia Bronte, career
switchers often went back and picked up a bypassed interest. "Only when they
retired did they feel free to do what they wanted," reports Ms. Bronte, a research
fellow at Hunter College's Brookdale Center on Aging.
JOE McMAHON ALWAYS wanted to follow the footsteps of his idol, Cole Porter.
Growing up in Massachusetts, he learned to play the banjo, mandolin and
saxophone. He formed a dance band at age 15. While attending the University of
Wisconsin, he composed songs for campus musicals. "Every night, he'd go down
and work with his songs on the piano at the fraternity house," frat brother
Jonathan "Jake" Jackson remembers. "Some of his music reminded me of Cole
Porter."
Mr. McMahon met a Porter cousin during a 1938 summer fishing trip with Mr.
Jackson. The cousin arranged for him to show his work to the famous songwriter
in New York . Mr. Porter liked Mr. McMahon's tunes, especially the lyrics. "You
keep writing, young man," he said. "But write your own thing."
That same day, Mr. Porter sent the student to his agent at nearby publisher
Chappell Music. The agent urged Mr. McMahon to return after he graduated in
1940.
He never did. "Paying the rent and buying the groceries made more sense than
being a starving songwriter," Mr. McMahon explains. He regrets abandoning his
passion. "Have you ever ... made some decision that you wished you could
change in some way?" he asks wistfully. "That was one of them."
He wrote a few songs during his subsequent military service. Then, "the muse
died," he says.
Mr. McMahon eventually became a successful advertising and marketing
manager for Jos. Schlitz Brewing Co. and three major ad agencies. Search firm
Korn/Ferry International recruited him upon his retirement in 1981 at age 65.
Four years later, he was one of its five highest billers.
HE JOINED A SECOND search firm in 1994 and finally retired from recruiting in
1997. Complications from multiple eye operations had destroyed most of his
sight. His prostate cancer also spread to his bones that year. "I was not a very
happy camper," recalls the usually ebullient Mr. McMahon, a twice-divorced
father with four grown daughters. "Life didn't seem to be worth living."
In early 1999, however, the muse returned. He composed his CD's title track
performing before the bathroom mirror in his tiny, cluttered Manhattan apartment.
A second tune took shape in the shower.
Through a mutual friend, Mr. McMahon won an audition with Jimmy Wisner, a
veteran music producer, arranger and composer. "He's very, very good" at
devising songs in the vein of Cole Porter and Irving Berlin, Mr. Wisner says.
"Maybe he wasn't ready in his earlier years."
Mr. Wisner arranged and produced the CD, which a studio recorded last
summer. "I was on cloud nine," Mr. McMahon says. He celebrated with a martini
at his neighborhood bar.
But succeeding late in life in a teen-focused industry is much harder than
launching a third career. Few retail chains or radio stations feature Mr.
McMahon's style of music. "If this [CD] had come out in the '60s, it might have
had a better chance," observes Jim Stone, host of radio station WLNZ's Big Band
Swing program in Lansing, Mich.
"Joe had big numbers in his head" and initially hoped to sell at least 100,000
copies, Mr. Wisner recollects. "I said to Joe .... 'If we can sell 25,000 to 50,000,
that would be sensational.' "
Impatient for success, Mr. McMahon jumps at chances to appear on radio shows
or autograph free disks for taxi drivers. "I had no idea it would be this hard to do
distribution," the ex-marketing man laments. Now, he is busy preparing a second
album, another blend of old and new melodies. He composed one while
hospitalized for a fractured foot last fall.
So, should we fainthearted tree huggers attempt to emulate Joe McMahon -even if we feel too insecure to switch gears? He believes a career change
requires considerable self-confidence and financial self-sufficiency.
But don't avoid embracing a creative career "just because you've reached a
certain age," advises Mr. McMahon. "Of all times, it is the time to do it because
the element of risk is no longer there."
How Older Managers
Can Stay Competitive
By MORLEY GLICKEN
In a competitive workplace, older managers often face a preference for younger
employees. At a time in their lives when their skills are finely honed and their
loyalty proven, many managers over 50 worry about being displaced by Young
Turks with a fraction of their experience.
David Hardcastle, a professor of social administration at the University of
Maryland in Baltimore, says one factor working against older professionals is the
drive to lower management costs. Many organizations have been reducing the
number of managers while increasing their workloads and job responsibilities.
"It's no longer a matter of youth versus experience," says Dr. Hardcastle, who
has studied the age-related employment trends in public agencies. "It's a matter
of who can take the most stress." When the pressure becomes too great, many
older managers withdraw from the organization. They often limp their way to
retirement with strong feelings of resentment and abandonment after their years
of hard work and loyalty.
But many organizations have been burned by young, inexperienced managers
and are beginning to realize that managers need people skills or productivity may
fall. Older managers are increasingly valued for their knowledge, loyalty and work
ethic.
Alice Larson, 58, a Minneapolis CEO of a private HMO serving small businesses
in the Twin Cities area, says older managers are often more sensitive to people
and can finesse problems that many younger managers can't handle. "Many
healthcare organizations have a number of whiz-kid managers in their 20s," she
says. "Some of them are highly trained and very skilled technically, but when it
comes to people skills and being able to creatively work out solutions to people
problems, older managers have them beat by a country mile."
What can you do to stay competitive? Consider the following suggestions from
successful older managers.
1. Keep yourself current. One trap older managers fall into is an unwillingness to
keep up with advances in technology and changes in business philosophy.
Change is the name of the game. You have to be willing to know as much, if not
more, than your younger competitors. Don't be proud that you're unwilling to
learn new things from younger colleagues. In fact, many successful older
managers exchange information with younger managers. Both benefit in the
process.
Be an active participant in conferences and workshops that can improve your
level of expertise. Use the contacts you make to network and develop new
professional opportunities.
2. Take nothing for granted. Organizations have short memories and you can be
out of a job in a flash. Keep your options open by having other work to fall back
on. Never assume that the organization is as loyal as you are. If you anticipate a
management preference for youth, consider moonlighting or developing a new
career path. Career changes can be one of the most energizing aspects of aging.
A study of retired professionals I conducted several years ago in the Palm
Springs, Calif., area suggests that most of them find retirement boring without
work. Many have developed new career paths and say their new work is more
exciting.
3. Keep your eyes and ears open for signs of change, however subtle. Be sure to
see who's the rising star in the company and protect your turf. Don't let anyone
invade your turf without resisting. Too many older managers cede territory too
readily because protecting themselves is too stressful. Don't surrender. Keep
your edge. In the long run, giving up is worse than fighting to maintain your turf,
since afterward you may feel a sense of defeat and could lose your job.
4. Stay focused on doing your job very well. It's difficult to remove someone
doing a terrific job no matter how good the competition might be. But don't
become arrogant. In the final analysis, everyone is expendable and if your
superiors want you out, you'll be out.
Charles Schnider, a retired regional sales manager for Air Canada, had received
several awards from his company for exceptional performance. "My productivity
was half again as much as my nearest competitor," says Mr. Schnider, who lives
in Victoria, British Columbia. "The boss was looking at the long run and guessed
that a guy [at age] 55 would lose his edge, sooner or later. He replaced me with a
much younger person." Admittedly, the demotion was hurtful and unexpected.
But it taught him to never assume anything when it comes to job security. "We're
all at risk no matter how good we are," he says.
5. Be nice to everyone. You never know who could hurt or help you. The fewer
enemies you have, the better. If Turks are about to make a move that might
affect your job security, it's better to be a friend than an enemy. You may reap
the reward of loyalty when the new manager takes over.
Make as many friends as possible. As one older manager who asked that his
name not be used says, "I've made a point of making so many brownie points
with everyone at work that it's given me a sort of protective shield against
obsolescence. This isn't the time in a career for payback. Be nice to everyone.
You never know when you might need their help."
6. Stay tuned in to the rumor mill. If you learn your job is in jeopardy, you may
have time to change your boss's mind. Dave Morland, 56, one of the developers
of Park West Ski Resort in Park City, Utah, was able to boost his performance
because a secretary told him his boss said something negative about his work. "I
was working for a small firm developing an electric bicycle in Detroit at the time,"
says Mr. Morland, who lives in Durango, Co. "It saved my job and it taught me
the value of having advance information."
7. Use every opportunity to broaden your professional contacts. Network with
your peers at other organizations. Additionally, consider putting confidential
position-wanted ads in appropriate career newsletters, journals and trade
magazines.
Tim Ellefson, 59, of Seattle, looked for a new career after retiring from the military
by placing confidential ads in journals and creating his own web site. "My wife
helped me write some things about myself that were really pretty amazing," he
says. "I was feeling pretty bad about retiring before I was ready and couldn't say
anything good about myself." His efforts quickly led to a new and interesting job
as an insurance broker.
-- Dr. Glicken is a professor of social work at California State University, San
Bernardino and a frequent contributor to careerjournal.com.
Should You Accept
A Promotion Late in Life?
By Morley Glicken
What should you do if you receive a great job offer close to retirement? If you’re
like a lot of managers, you may have mixed feelings. While you’re flattered to be
asked, you aren’t certain if you want the stress and strain that accompanies the
challenge.
Contrary to the perception that older job hunters can’t find work, some seasoned
managers receive exceptional job offers just when they’re thinking about slowing
down. Some companies are intentionally tapping able managers who may have
been passed over for promotions in the past for new roles that require maturity
and commitment, says David Hardcastle, professor of social service
administration at the University of Maryland in Baltimore.
But many older managers are understandably leery of accepting promotions at
this point. Some are cynical about late-in-life job offers "not because they’re
burned out, but because they’ve had to live with rejection in the past," says Dr.
Hardcastle.
Is It Worth It?
Others wonder if they’re being set up for failure and if the risk is worth the
reward. Some organizations may ask older managers to take on politicallycharged assignments that no one else wants, says Marjorie Callaghan, a 55year-old benefits professional in California. She was offered and accepted such a
position with a consortium of colleges in southern California. Being offered the
high-level benefits position seemed too good to be true, especially since it came
at a time "when I thought my age had dead-ended me," Ms. Callaghan says.
Not long after she began work, though, she discovered she’d walked into an
impossible situation. "The place was a mess, and it became clear that I had no
job security," she says.
After spending three years trying to resolve numerous situations, she decided to
return to her former position.
"Anyone in my age group who’s offered a big promotion should think twice about
why the offer’s being made," says Ms. Callaghan. "Very often it’s to fix something
that’s gone wrong. But the work sometimes ends up causing bad feelings and
offending some people, and when you’re done, you get no thanks for the hard
work."
Other managers who take challenging jobs late in life say the strain of the
assignments ruined their health. Indeed, stress can be particularly harmful to
older people, says Gene Waterman, a psychiatrist at Community Counseling
Center in Hot Springs, Ark. While many older managers know how to cope with
pressure, those who tend to internalize stress should avoid it, says Dr.
Waterman.
"The reality is that a very stressful job may be much worse for your health later in
life," he says.
Some Feel Energized
Those who feel late job offers aren’t worth the aggravation may be in the
minority. Regardless of age, most executives still dream about succeeding at an
exceptional job, says Bill Howie, former executive director of the Higher
Education Assistance Foundation in St. Paul, Minn.
"Anyone who’s experienced what you can really do as a manager is always open
to new opportunities," he says.
This doesn’t mean that you should accept a new job without first researching the
employer and understanding its expectations. "But if older managers asked my
advice about taking a new job, I’d say that if their health is good and they have
the drive and desire for new experiences to absolutely go for it," he says.
"Nobody I’ve met wants to go into retirement having turned down a great job
opportunity."
When thinking through your decision, consider whether you’ll regret declining a
great offer because it seemed too risky or interfered with your planned retirement
date. Many managers who turn down challenging assignments in late career feel
sad about the decision later on, says Dr. Hardcastle. They count the days until
their retirement but as the date nears, they realize that they want to continue
working and wish they’d taken the promotion.
How likely is it that you’ll feel this way? More than half of men surveyed at 40
sought job advancement while only one-fifth of men at 50 had this aspiration,
according to a study conducted in California by the MacArthur Foundation
Research Network on Successful Mid-life Development (MIDMAC). The
researchers believe this shift in ambition between 40- and 50-year-olds is due to
greater interest in family life and personal growth.
Minority executives may be the exception. Many experience job discrimination
throughout their careers that bars them from gaining promotions, says Arthur
Clark, CEO of a large chain of residential-care facilities in Southern California. "If
we didn’t take promotions late in life, very few of us would have the improved
salaries and benefits that offer us security in our later years," he says.
Making the Decision
Given these arguments, what should you do if you’re offered a great job within a
few years of retirement? Here are some guidelines to help you with your choice:
1. Decide if you still have a burning desire to do new and exciting work.
If so, accept the challenge. "Getting up early in the morning and facing a lot of
stress and pressure as soon as I walk into my office is the worse grind I’ve ever
experienced," says an older manager who took on a new job. "But sitting around
in my old job doing the same boring work I’d been doing for 20 years was burning
me out. I’m glad to see the weekend come, but every day is a high for me. I feel
satisfied that I’m getting a chance to show what I can really do."
2. Consider the reasons you’re being asked to take a new job.
Are you being set up for failure? Is the organization taking advantage of you
because of your strong work ethic and loyalty? If you think your superiors’
motives are good, don’t fear taking the assignment, says Mr. Howie.
3. Calculate how much your retirement benefits may increase because of
the promotion.
Your retirement benefits often are based on your final salary and if you receive a
significant increase, your retirement years may be more comfortable. You also
may be able to retire earlier than you planned.
4. Evaluate the toll that staying in your present job or even retiring may
take on you.
Boredom creates its own physical and emotional stresses. If the boredom and
predictability of a current job or retirement are as stressful as the excitement and
challenge of a new position, you may want to accept the challenge.
"Retirees can develop serious emotional problems [if] they feel bored and lonely
without work," says Dr. Waterman. "My feeling is that you should continue
working as long as your health permits. The more exciting and challenging the
work, the better most older people feel about themselves before and after they
retire."
5. Consider whether your current job may be eliminated and whether not
taking the new assignment will cause you to be laid off.
"In a job market where everyone is at some risk of losing their job, you have to be
proactive and take the offers as they come," says Dr. Hardcastle. "If you don’t,
you may find yourself without work at all."
When to Refuse
But there may be equally valid reasons to not accept a job offer late in life. For
instance, if you don’t have a strong desire for new work challenges or your
energy is low and can’t be replenished, don’t take on a new assignment. It’s also
not a good idea if your health is an issue and the job is so stressful that it will
have a physical effect.
If your level of cynicism about corporate America is high, you probably should
decline. Taking a new job also isn’t wise if you believe the company will replace
you soon. As an older manager says, "Who needs to experience more rejection
so close to retirement?"
Deciding to take on new responsibilities late in life isn’t easy. Health factors,
monetary rewards, your energy level and the long hours are issues you should
weigh in the decision.
But if a new position satisfies your desire to achieve and leads to a better life
before and after retirement, older managers advise considering the new position.
Discuss the offer with family and friends before accepting. Taking a new position
at this point will likely change your personal life. Those close to you should be
involved in your decision.
-- Dr. Glicken is a professor of social work at California State University, San
Bernardino.
How to Avoid a
Mid-Life Career Crisis
By Donna Peerce and Chuck Cochran
Baby boomers are beginning to face the age factor when they job hunt. As this
generation ages, its members in the executive ranks can experience an uphill
battle in their job search. Too many highly paid baby boomers are competing for
too few top jobs, reports Fortune magazine, in a cover story that announced
"Finished at Forty."
Professionals in middle-age are far from ready to be put out to pasture. But
climbing the career ladder isn't for everyone. For many, the greater levels of
stress and competition that go with high-level jobs aren't worth the increase in
power and pay. These executives may need to adjust their job-search strategies
or career goals to compete in today's job market.
Bryce Meredith, 55, learned this when he recently reentered the job market. Mr.
Meredith ran his own recruiting firm, Executive Consultants Inc. in Chicago, for
more than 20 years. He believed he'd be an asset to any corporation; he'd built a
strong career in organizational development, risk management and humanresource management. When he decided to sell his company, he was surprised
that securing a new position as a risk management specialist wasn't as easy as
he thought.
"Why wouldn't anyone want to hire me?" he asked a career counselor. "I've been
around the block a few times. I can certainly tell these younger executives a thing
or two about risk management."
But that was precisely his problem. At one prospective employer, he'd told the
interviewer exactly how to run the employer's risk-management division. Mr.
Meredith seemed controlling and unwilling to learn their way of doing things.
Mr. Meredith, like many mature candidates, learned he'd need to alter his
approach. If he were pursuing a position as president or chief operating officer,
his style might have been appropriate because his audience would be the CEO
and stockholders. For a senior executive position, they might want someone with
specific ideas, proven leadership and a hard-hitting approach.
However, Mr. Meredith needed to show his ability to cooperate as much as his
technical and leadership skills. He came to see that in several interviews he'd
intimidated the key decision-makers -- who often were several years younger.
Mr. Meredith practiced presenting himself as a "confident, successful risk
management specialist," not as a president. He landed a job with a top Chicago
retailer that pays $78,000 annually and provides good benefits -- one reason he
wanted to work for someone else.
Changing Priorities
When some experienced managers reach middle age, they begin to feel as if
they've "been there, done that" and don't need to prove themselves to anyone
anymore. Many professionals find themselves willing to step down in pay to "step
up" to a higher quality life.
"I finally realized," Mr. Meredith says, "that if I wanted to get back into the job
market, I had to be realistic about salary, status and position. There are only so
many presidents in companies. Otherwise, if I hadn't been agreeable to
accepting less money, it probably would have taken me a couple of years to find
a job. And I couldn't afford that."
Many older professionals discover their priorities have changed. For some, it's a
matter of spending more time with family or reducing stress. This was the case
with Bob Peterson, 41, of Santa Barbara, Calif., who says he gladly traded his
high-paying job for one that paid less.
"The stress and headaches of working 80 hours a week as a sales manager for
that $125,000 salary were just too much," he says. "I never saw my wife or
children, and I was unhappy. I decided that I'd rather spend more quality time
with my family and have fewer material things, so I quit the higher paying, more
stressful job and chose a job in sales for $50,000 a year" plus bonus and
incentives. Mr. Peterson sold his home and bought a smaller, more economical
house. For him, family time was a priority.
Another career alternative open to experienced professionals is independent
management consulting. These professionals often earn more working on a
contract basis. While consulting usually doesn't offer the benefits and stability of
a regular job, it can be more flexible.
More jobs today are project-based, says Mark Nightingale, branch manager in
Nashville for Robert Half International Inc., a staffing firm based in Menlo Park,
Calif. There are more opportunities for mature professionals as consultants,
especially those who are highly skilled, such as CPAs, MBAs and executives with
20 or more years' experience, he says. In 1997, Robert Half formed a
management consulting division, RHI Management Resources, for "more mature,
highly experienced job candidates," in finance and technology, Mr. Nightingale
says.
"The marketplace is shifting," he says. "We're finding that our mature job
candidates now can earn more money as management consultants than if they
were employed by a single company."
New Paths
Some professionals in mid-life decide to change careers altogether, even if it
means learning a new set of skills. Consider a training director who had worked
for a major international corporation in New York City for more than 25 years.
Bored with her work, she quit at age 54 to become a photographer. She earned
an associate's degree in photography, interned at a reputable New York studio,
relocated to her hometown of Louisville, Ky., and opened her own shop.
Entering a new field often isn't easy. It's a personal choice and usually requires
sacrifice. The former training director gave up a six-figure salary and, as with any
start-up, it may be years before she turns a profit.
Many professionals aged 45 to 50 and older rediscover who they are and their
mission in life. If you haven't thought about it before, there's no better time to
reevaluate your goals. What do you want to do with the rest of your life? The
answer is important in today's workplace. If you're passionate about what you
want to do, it will show. Employers recognize passion and will be more likely to
hire you than those who don't love what they do.
Now's also the time for a career tune-up, a sharpening of your skills so you can
compete in the job market. Stability, commitment and loyalty make older workers
desirable in today's job market, says Sharon Huber, employment services
director for Senior Citizens Inc., a non-profit resource center in Nashville. But "to
be to be competitive," she says, "mature workers need to be willing to learn new
management and office procedures and seek training at their own expense, if
necessary, to acquire or maintain up-to-date computer skills."
Examine your skills. For example, did your last position require skills specific to
only that job? Upgrade your qualifications with classes, workshops, internships or
self-paced training. If the last seminar you attended was 10 years ago, you're
"out of the loop." Older job candidates need to realize that often the key to job
success is adapting and fitting into the work environment they're entering. "They
need to be flexible regarding hours, job duties and employers' expectations,"
says Ms. Huber.
-- Ms. Peerce is vice president of writing services and Mr. Cochran is president of
the Heart & Soul Career Center in Nashville, Tenn. They are the authors of
"Heart & Soul Resumes" (1998, Davies-Black Publishing) and "Heart & Soul
Internet Job Search" (1999).
EEOC Clarifies Rule
On Terminating Older Workers
By FRANCES A. MCMORRIS
Staff Reporter of The Wall Street Journal
From The Wall Street Journal Online
The Equal Employment Opportunity Commission issued a regulation clarifying
what companies have to tell older workers who are terminated and asked to sign
waivers giving up their right to sue for age discrimination.
It comes as older workers are increasingly filing age-discrimination claims and
asking courts to invalidate their agreements not to sue. Under federal law,
workers who waive their right to sue are supposed to be told the ages of both
those who have been terminated and those who have been retained, so they can
determine whether they would have an age-discrimination claim.
Until now, however, employers have been "absolutely at sea guessing what
makes a valid waiver," said Patrick Shea, a Stamford, Conn., management
attorney who was on the panel that created the new rule.
At the EEOC, legal counsel Ellen Vargyas said the agency wants "employers
who rely on waivers to use good waivers and have employees understand their
choices."
One-Year Age Bands
Among the areas addressed is how companies should provide statistical data
regarding the job classifications and ages of those being terminated and those
who aren't. The rule requires age bands no broader than one year. "Five-to-10year bands don't allow you to analyze for age discrimination," Ms. Vargyas said.
(Federal law bars discrimination against people 40 and over.)
The rule, in effect as of July 6 1998, also specifies that "an agreement that fails to
meet all of the requirements" of the federal age-discrimination law "will not be
valid." In addition, it says that requirements that employees repay any benefits
before filing discrimination complaints with the EEOC "will be void." It also
specifies that companies can't give employees less than the seven days required
under the law to reconsider after signing an agreement, even if the employee
agrees to a shorter time period.
In 1998, a federal judge in Manhattan dealt with some of these issues in a case
involving Gerber Products Co., a unit of Swiss drug giant Novartis AG. U.S.
District Judge Robert Sweet ruled that a group of older workers laid off by Gerber
are entitled to severance benefits and didn't lose their right to sue for age
discrimination when they signed releases that didn't comply with the Older
Workers Benefit Protection Act.
'Act of Retaliation'
Judge Robert Sweet found the Gerber release invalid because it didn't provide
the ages of employees who were terminated and retained. Citing a recent
Supreme Court decision on the issue, he also called Gerber's attempt to have
one discharged employee who had signed the release return severance benefits
"an act of retaliation."
In addition, the judge found that Gerber couldn't fix problems with its waiver by
giving the employees more information and asking them to reaffirm the first
release.
Gerber, based in Fremont, Mich., laid off about 389 sales employees in a
January 1998 reorganization of its sales force that eliminated nearly all its direct
sellers and replaced them with independent brokers. Of those laid off, 165 were
older than 50 and an additional 100 were over 40, said Darnley Stewart, the
lawyer for the employees, who have proposed a class action on behalf of the
older workers who lost their jobs.
Ira Rosenstein, a lawyer for Gerber, denies any discrimination. He declined to
comment on the EEOC's ruling.